- During the Asian session this morning, the S&P 500 finds support at the 5840.0 level.
- The Nasdaq gained new support this morning at the 20200.0 level
S&P 500 graphical analysis
During the Asian session this morning, the S&P 500 finds support at the 5840.0 level. Additional support in that area is the 50 EMA moving average, which influenced the index to remain stable. In the EU session, we rose to $5860.0 and expect a continuation of the bullish side in the US session. On Thursday, October 17, the S&P 500 reached a new all-time high at 5882.5. We managed to surpass the previous high from Monday, October 14.
All signs indicate that we can expect a continuation of the bullish consolidation. The highest potential targets are the 5880.0 and 5900.0 levels. If the current bullish momentum wanes, the S&P 500 could turn to the bearish side. After that, we will see a pullback below the 5840.0 level and the 50 EMA. Since we lost the previous support, we should continue the pullback and look for a new one at lower levels. Possible lower targets are the 5820.0 and 5800.0 levels.
Nasdaq Chart Analysis
The Nasdaq gained new support this morning at the 20200.0 level. With the support of the 200 EMA, we quickly broke back above the weekly opening level to the positive side and continued to the daily high at 20315.0. The index at 20250.0 forms a growing low and thus confirms the determination to continue recovering towards the bullish side. The highest potential targets are the 20350.0 and 20400.0 levels.
If the bullish momentum slows again, the Nasdaq will have to begin a new decline. Once again we are forced to test the weekly opening level and the support of the 200 EMA moving average. This time, we need a breakout of the index to a new daily low as confirmation of the bearish momentum. Possible lower targets are the 20150.0 and 20100.0 levels. This week's Nasdaq low was 20,042.0.
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